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<br />.~ <br />Exr of <br />~"~ w United Staties Department of the Interior <br />' BURIEAU OF LAND MANAGEMENT <br />d~ ea Colorado State Office <br />2850Youngfield Sveet <br />~a psr~vx~+xro: Lailcewood, Colorado 80215-7093 <br />RECEIVED MAY 16 ZO(12 <br />MAY 1 71001 <br />Division of Minerals and Geology <br />Certified Mail <br />DECISION <br />Blue Mountain Energy, Inc. <br />10714 South Jordan Gateway, Ste. 300 <br />South Jordan, Utah 84095 <br /> <br />www.co.blm.gov <br />CO-933(I{NI) <br />3451 <br />C-0126669 <br />Coal <br />Lease Terms and Conditions Readiusted <br />Coal lease C-0126669 was issued effective August 1, 1982, and becomes subject to readjustment of its <br />terms and conditions on August 1, 2002. <br />Notice of intent to readjust the coal lease was sent to the lessee, Blue Mountain Energy, Inc., on <br />August 29, 2000. The lease is in the Deserado Logical Mining Unit. This action has been reviewed for <br />conformance with the Bweau of Land Management's public land health standards adopted <br />February 12, 1997. The readjustment will not adversely affect achievement of the public land health <br />standazds. As provided in the Mineral Leasing Act of 1920, as amended (41 Stat. 437, 30 U.S.C. 181 et <br />sec .), and the regulations at 43 CFR 3451, we are hereby readjusting the terms and conditions of the <br />lease. A Copy of the lease is enclosed. The readjusted terms and conditions become effective August 1, <br />2002. <br />The annual rental remains at $3 per acre or fraction thereof as provided in the current lease. The royalty <br />rate shall remain at 8.0 percent of the value of the coal removed from an underground mine as described <br />in the readjusted lease. The value of the coal shall be determined in accordance with the regulations. <br />Currently, the royalty rate for the lease is reduced to 2.0 percent and the rental is waived for a period of <br />two years, effective August 1, 2001. The reductions of royalty and waiver of rentals are subject to the <br />stipulations listed in the Decision dated June 12, 2001, granting Royalty Rate Reductions and Waiver of <br />Rentals. <br />The adequacy of the lease bond is reviewed periodically and adjusted when necessary to reflect changed <br />conditions. The lease bond is currently $29,000 and may be reduced to $5,000 either by filing a rider to <br />the existing bond or by filing a replacement bond. <br />Payments of rentals and royalties must be submitted to the Minerals Management Service in accordance <br />with that agency's regulations in Title 30, Code of Federal Regulations. In accordance with the <br />regulations at 43 CFR 3451.2(b) and (e), this decision constitutes the final action of the Bweau of Land <br />Management on all the provisions contained in the readjusted lease. The effective date of the readjusted <br />leases shall not be affected by the filing of any appeal of, or subsequent civil suit regarding, any of the <br />